People Power Party Fact-Check Refutes Lee Jae-myung's Statements
Real Estate Market Recovery During Daejang-dong Development Period
[Asia Economy Reporter Naju-seok] On the 18th, the People Power Party refuted the claim by Lee Jae-myung, the Democratic Party presidential candidate and Governor of Gyeonggi Province, that the Daejang-dong development project was not promoted as a public development due to opposition from Saenuri Party (the predecessor of the People Power Party) and was instead promoted as a public-private joint development, calling it false.
The People Power Party released rebuttal materials, stating that the remarks made during the National Assembly Public Administration and Security Committee’s inspection of Gyeonggi Province at the Gyeonggi Provincial Government office were false answers after fact-checking.
The People Power Party first introduced, "Candidate Lee led a movement opposing the Daejang-dong development itself in 2005 as the ‘Chairman of the Preparatory Committee for the Bundang Urban Environment Protection Movement.’" In particular, on December 9, 2005, Candidate Lee was introduced as having opposed LH’s Daejang-dong development, saying, "We must prevent the destruction of green spaces planned under the name of development and suppress overcrowding within the urban area."
Furthermore, when he was a candidate for Seongnam mayor in 2010, Candidate Lee reportedly pledged "prioritizing private development for all urban developments in Seongnam including Daejang-dong, led by Seongnam City," along with "expanding opportunities for private participation in Daejang-dong urban development to create a premium city."
Additionally, according to a recent JTBC senior executive’s notebook, it was introduced that a memo was found in which Mayor Lee instructed a ‘review of private development for Daejang-dong.’ Also, original residents of Daejang-dong reportedly stated that Candidate Lee supported private development during his candidacy for Seongnam mayor.
The People Power Party claimed, "Candidate Lee reviewed private development promotion under his own directive during his mayoral term, but now that problems have arisen, he is shifting the blame onto Assemblyman Shin, a former member of the Grand National Party, by saying public development could not proceed."
They also refuted the claim that the real estate market was unfavorable during the March 2015 public offering for private developers of the Daejang-dong project.
The People Power Party stated, "At that time, the real estate market, especially in the metropolitan area, was recovering due to the abolition of the price ceiling system for sale prices." The housing sales price index for Seongnam City and Bundang-gu, announced by the Korea Real Estate Board, showed an upward trend after hitting the lowest point in March 2013. Furthermore, areas with less favorable locations than Pangyo, such as Suji in Yongin and Dongtan 2 New Town in Hwaseong, recorded high subscription competition rates, indicating an active real estate market.
Moreover, the People Power Party declared that the claim that related materials were submitted during the inspection was also false. According to the People Power Party, "The most critical period in the Daejang-dong development, from February to June 2015, when the private developer public offering, the business agreement deciding dividends and excess profit recovery, and the shareholder agreement took place, is missing from the materials."
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